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INTERCARGO REPORTS RECORD RESULTS FOR THIRD QUARTER AND NINE MONTHS

   INTERCARGO REPORTS RECORD RESULTS FOR THIRD QUARTER AND NINE MONTHS
    SCHAUMBURG, Ill., Nov. 13 /PRNewswire/ -- Intercargo Corporation (NASDAQ-NMS: ICAR) today reported record results for the third quarter and nine months ended Sept. 30, 1991.
    The company also said it has completed the acquisition of the remaining shares of Kingsway Financial Services.  The insurance holding company, based in Toronto, is now a 100 percent owned subsidiary of Intercargo Corporation.  The final acquisition was made for cash and 212,500 shares of the company's stock.
    Net income for the 1991 third quarter rose 76 percent to $1,094,000, or 45 cents per share, on 2,417,000 average shares outstanding, from $621,000, or 27 cents per share, on 2,300,000 shares outstanding for the 1990 third quarter.  On a comparative consolidated basis, total revenues for the third quarter rose 29 percent to $12,205,000 from $9,481,000 a year earlier.
    For the nine months ended Sept. 30, 1991, net income was $2,465,000, or $1.04 per share, on 2,370,000 average shares outstanding, up 32 percent from $1,870,000, or 81 cents per share, on 2,300,000 shares outstanding for the first nine months of 1990.  On a comparative consolidated basis, total revenues for the 1991 nine months were $31,825,000, a 15 percent increase from $27,628,000 a year earlier.
    On a non-consolidated basis, total revenues in 1990 were $6,271,000 for the third quarter and $18,593,000 for the nine months.
    President and Chief Executive Officer James R. Zuhlke attributed the earnings gain to improved performance in all product lines and particularly to the expanded marketing efforts in Canada.  He said the company continues to develop speciality programs for its primary client base as well as other specialty market opportunities.  On Oct. 1, Intercargo Corporation opened a contract bond unit primarily focusing on small contractors.
    Headquartered in Schaumburg, a Chicago suburb, Intercargo Corporation is a leading provider of specialized insurance coverage to companies involved in international trade.  Its market is primarily importers and exporters, customs brokers and freight forwarders and other global traders.  The primary coverages it underwrites are U.S. Customs Bonds for which it controls about 33 percent of the market, cargo insurance and professional liability for the broker forwarder industry.
                 INTERCARGO CORPORATION AND SUBSIDIARIES
                   Consolidated Statements of Income
              (Unaudited, in thousands, except per share data)
      Periods ended:                 Three months         Nine months
      Sept. 30:                     1991      1990      1991       1990
    Revenues:
     Insurance premium income     $11,138    $5,856   $28,872   $17,477
     Net investment income            954       415     2,628     1,116
     Other income                     113        --       325        --
    Total revenues                 12,205     6,271    31,825    18,593
    Losses and expenses:
     Losses and loss adjustment
      expenses                      5,744     2,370    14,487     7,089
     Policy acquisition costs       3,286     2,656     8,854     7,735
     Other underwriting expenses    1,136       606     3,274     1,682
     Interest expense                  --         4        82         4
    Total losses and expenses      10,166     5,636    26,697    16,510
    Equity in the earnings of
      unconsolidated affiliates        --       146        --       367
    Operating income before
      federal income tax            2,039       781     5,128     2,450
    Federal and foreign income tax:
     Current                          677       170     1,803       626
     Deferred                         159       (10)      204       (46)
    Total income tax                  836       160     2,007       580
    Earnings applicable to pre-
     acquisition unaffiliated
     ownership                        109        --       656        --
    Net income                     $1,094      $621    $2,465    $1,870
    Net income per share            $0.45     $0.27     $1.04     $0.81
    Average number of common
     shares outstanding             2,417     2,300     2,370     2,300
                 INTERCARGO CORPORATION AND SUBSIDIARIES
               Pro Forma Consolidated Statements of Income
             (Unaudited, in thousands, except per share data)
     Periods ended:                  Three months         Nine months
     Sept. 30:                      1991      1990      1991      1990
    Revenues:
     Insurance premium income     $11,138    $8,528   $28,872   $24,993
     Net investment income            954       931     2,628     2,555
     Other income                     113        22       325        80
    Total revenues                 12,205     9,481    31,825    27,628
    Losses and expenses:
     Losses and loss adjustment
      expenses                      5,744     4,214    14,487    12,308
     Policy acquisition costs       3,286     2,865     8,854     8,560
     Other underwriting expenses    1,136       940     3,274     2,699
     Interest expense                  --        45        82       157
    Total losses and expenses      10,166     8,064    26,697    23,724
    Operating income before
      federal income tax            2,039     1,417     5,128     3,904
    Federal and foreign income tax:
     Current                          677       550     1,803     1,539
     Deferred                         159       (10)      204       (46)
    Total income tax                  836       540     2,007     1,493
    Net income before deduction
     for preacquisition earnings    1,203       877     3,121     2,411
    Earnings applicable to pre-
     acquisition unaffiliated
     ownership                        109       256       656       541
    Net income                     $1,094      $621    $2,465    $1,870
    Earnings per share:
     Before deduction for pre-
      acquisition earnings          $0.50     $0.36     $1.32     $1.02
     After deduction for pre-
      acquisition earnings          $0.45     $0.26     $1.04     $0.79
    Average number of common
     shares outstanding             2,417     2,417     2,370     2,370
    -0-             11/13/91
    /CONTACT:  James R. Zuhlke, president and CEO of Intercargo, 708-517-2510/
    (ICAR) CO:  Intercargo Corporation ST:  Illinois IN:  INS SU:  ERN TS-SM -- NY017 -- 3882 11/13/91 11:13 EST
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Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Date:Nov 13, 1991
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